The first quarter of 2024 has unveiled compelling insights into Macau’s gaming landscape. Despite facing headwinds, the region’s gaming concessionaires exhibited resilience, showcasing noteworthy figures in key performance metrics.
Overall Performance:
Macau’s gaming concessionaires collectively generated a Property EBITDA of US$2.03 billion in Q1 2024, marking a 17% decline compared to the same period in 2019. However, this figure demonstrated improvement from the previous quarter’s US$1.94 billion. Notably, margins experienced a slight dip from 29.9% in Q1 2019 to 29.2% in Q1 2024.
Segment Performance:
Mass gaming revenues emerged as the primary driver of growth, surpassing Q1 2019 levels by 11% and soaring 67% higher than the corresponding period last year. Conversely, VIP gaming lagged, standing at only 23% of pre-COVID levels. Despite challenges, total industry Gross Gaming Revenue (GGR) remained at 75% of 2019 levels, aligning with the recovery trajectory observed since Q4 2023.
Market Share Dynamics:
In the mass GGR segment, notable gainers included SJM, MGM China, Melco, and Wynn, while Sands China and Galaxy experienced setbacks. On the other hand, in the VIP segment, SJM, Galaxy, Wynn, and MGM gained market share, with Melco and Sands China witnessing declines. Interestingly, only MGM and SJM registered gains in rolling chip volume for the quarter.
Revenue Figures:
Data from the Gaming Inspection and Coordination Bureau (DICJ) revealed Macau-wide GGR reaching MOP$57.3 billion (US$7.11 billion) in Q1 2024. March emerged as a particularly strong month, setting a new post-COVID revenue record of MOP$19.50 billion (US$2.42 billion).
Despite enduring challenges, Macau’s gaming industry continues to exhibit resilience and adaptability. The Q1 2024 performance reflects a mix of encouraging trends and areas for improvement, setting the stage for further analysis and strategic planning in the coming quarters.